---
title: "Microsoft Establishes New Division to Expand Gaming Franchises into Entertainment Industry"
url: https://newscentral.site/microsoft-establishes-new-division-to-expand-gaming-franchises-into/
language: en
publisher: "News Central Site"
section: "Technology"
published: 2026-10-08T21:25:16.000Z
updated: 2026-10-09T03:47:41.283Z
id: 6ddf79eb-8b10-4b5a-8cd1-8a501d561b99
source: "CNET https://www.cnet.com/culture/entertainment/new-xbox-division-xp-will-adapt-more-video-games-for-movies-and-tv/"
attribution: "Link to https://newscentral.site/microsoft-establishes-new-division-to-expand-gaming-franchises-into/ and name News Central Site when you quote or summarize this story."
---

# Microsoft Establishes New Division to Expand Gaming Franchises into Entertainment Industry

The company has announced plans to adapt its video game brands into movies, TV shows, merchandise, and live events through its new XP division.

Microsoft's gaming division has unveiled a major expansion into the entertainment industry, despite facing significant challenges in recent months. The company announced that it is establishing a new division called XP, which will be responsible for adapting its video game brands into movies, TV shows, merchandise, and live events.

The move comes after the success of several high-profile adaptations, including Minecraft: The Movie and the Fallout TV series. These projects have shown that there is demand for content based on popular video games. However, it's worth noting that these are just a few examples among hundreds of Xbox titles, with only a handful having been adapted into other forms of media.

Xbox has revealed plans to bring several more of its iconic franchises into the entertainment industry. Movies and TV shows based on Call of Duty and Gears of War are reportedly in development, while Diablo will be featured in an animated Netflix series. These projects demonstrate Xbox's ambition to expand its reach beyond the gaming world.

The newly created XP division will consist of four departments, each with a distinct focus. Xbox Pictures will oversee film and TV adaptations, while Xbox Products will manage licensing and merchandise opportunities. Meanwhile, Xbox Places will host live events and broadcast experiences in theme parks and other locations. Finally, Xbox Partnerships will collaborate with creators and brands to develop new content.

Asha Sharma, Xbox CEO, has appointed Kayleen Walters as president of XP, a new division focused on adapting video games into movies and TV shows.

Walters brings significant experience to her new role, having served as executive producer for A Minecraft Movie, which topped the US box office last year with over $424 million in ticket sales. She is currently producing the sequel, A Minecraft Movie Squared, set for release in 2027. Walters' background in film production will be crucial in navigating the process of adapting video games into cinematic content.

Before joining Xbox's Mojang Studios in 2025, Walters worked at Lucasfilm for 13 years, where she spearheaded global marketing campaigns for the Star Wars franchise.

The appointment of Maria Angelidou-Smith as CEO of Mojang and Minecraft is also a significant move. With her experience as former VP at Meta and chief product officer at Reddit, she will bring valuable expertise to the role.

Streaming media analyst Dan Rayburn believes that by expanding into content creation beyond gaming, Xbox is making a strategic decision to cater to a broader audience.

The success of Minecraft and Fallout in transitioning from video games to movies and TV has provided valuable insights for Xbox's new division XP. These titles demonstrated that adapting popular game franchises for other forms of media can lead to significant increases in user engagement and revenue.

However, the same approach may not be effective for all Xbox games, according to industry analyst Dan Rayburn. He notes that certain brands may resonate more with gaming enthusiasts than with a broader audience, making it essential to carefully select which titles are adapted for other media platforms.

The appointment of a film executive to lead division XP is seen as a strategic move by the company to bring in expertise from outside the gaming industry and ensure successful content creation beyond gaming.

---
Source: [CNET](https://www.cnet.com/culture/entertainment/new-xbox-division-xp-will-adapt-more-video-games-for-movies-and-tv/)  
Published by News Central Site: https://newscentral.site/microsoft-establishes-new-division-to-expand-gaming-franchises-into/